- Ronaldo is being sued for promoting Binance, allegedly leading to investor losses by encouraging them to invest in unregistered securities offered on the platform
- The lawsuit claims Ronaldo’s NFT collections and crypto promotions with Binance constitute illegal unregistered securities that he failed to properly disclose as paid promotions
- Plaintiffs allege Ronaldo’s promotions brought millions of new users to Binance and are seeking damages for their investment losses encouraged by Ronaldo’s partnership
Cristiano Ronaldo, one of the most famous soccer players in the world, is facing a proposed class-action lawsuit over his promotion of the crypto exchange Binance. Plaintiffs claim Ronaldo’s promotion led to losses from their investments in what they allege to be unregistered securities offered by Binance.
Ronaldo’s Promotion of Binance
In mid-2022, Ronaldo entered a multiyear partnership with Binance to promote a series of NFTs tied to the exchange. Ronaldo released at least three NFT collections in coordination with Binance.
The lawsuit alleges Ronaldo’s promotions encouraged millions of fans to sign up for Binance and invest in products like the exchange’s native BNB token. Searches for Binance allegedly rose 500% the week after Ronaldo’s first NFT drop.
Unregistered Securities Allegations
The complaint claims the NFTs and investments promoted by Ronaldo constitute unregistered securities. Plaintiffs allege Ronaldo knew or should have known about Binance’s unregistered securities.
The lawsuit cites SEC guidance warning celebrities they must disclose payments for crypto promotions. Plaintiffs claim Ronaldo failed to make these disclosures.
Plaintiffs Seek Damages
The plaintiffs – Michael Sizemore, Mikey Vongdara and Gordon Lewis – say they suffered losses from the Binance investments promoted by Ronaldo. They are seeking damages and legal fees.
This lawsuit comes as Binance faces its own legal troubles with U.S. regulators over AML violations and running an unregistered money transmitter business. The SEC has also accused Binance of selling unregistered securities.
